Helen of Troy powered through a robust second quarter as the company reported increased demand for its housewares, health and home and beauty products.
Consolidated net sales revenue increased 28.2% to $530.9 million compared to $414 million in the previous second quarter, driven by an organic business increase of $106.4 million, or 25.7%, primarily reflecting growth in brick and mortar sales, an increase in online sales, and an increase in international sales.
Net income was $87.3 million, or $3.43 per diluted share, compared to $46.1 million, or $1.83 per diluted share in the previous second quarter.
By segment, housewares net sales revenue increased to $201.8 million, primarily reflecting higher demand for the Oxo brand products as consumers spent more time at home cooking, cleaning, organizing and pantry loading in response to COVID-19, an increase in online sales for both Oxo and Hydro Flask, higher sales in the club channel, growth in international sales, and new product introductions.
Health and home net sales revenue increased to $211.4 million, primarily driven consumer demand for health care and healthy living products in domestic and international markets, in both brick and mortar and online channels, mainly attributable to COVID-19, and demand driven by wildfire activity on the west coast of the United States.
Beauty net sales revenue increased to $117.5 million. The organic revenue increase reflects growth in the appliance category, expanded distribution, primarily in the club channel, and an increase in international sales.
The company added that CEO Julien Mininberg intends to extend his employment with the company through February 29, 2024. The company and Mininberg are working to finalize an amended employment agreement.
The company also said that chief financial officer Brian Grass intends to retire to pursue entrepreneurial interests and will step down from his position effective November 1, 2021, after more than 15 years at the company and more than seven years in the CFO role. The company intends to conduct an internal and external search for his replacement.
Julien Mininberg, Helen of Troy’s CEO, said, “We delivered outstanding results in the second quarter. Our diversified brand portfolio provided trusted solutions to consumers amidst the global pandemic and the devastating wildfires in the western United States. I am very proud of our associates around the world, who perform at an elevated level every day as the resilience of our business, organization, and culture continues to be tested and confirmed. All three of our business segments and international grew more than 20% in the quarter. Health & Home led the way with 33.1% organic sales growth, propelled by its health-related Vicks, Braun, Pur, and Honeywell products that are there for consumers when they are needed most. Housewares organic sales increased 20.2% with Oxo continuing to thrive amid the home nesting trend, Hydro Flask returning to growth in the quarter, and excellent international growth for both brands. The online channel continues to be a powerful growth driver as the pandemic accelerated consumer preference for clicks over bricks. Online sales grew 32% to now represent 24% of our total sales.”